Another remanufacturing example - Diamond Aircraft

[Rick Junkin]

The idea of remanufacturing Mooneys has been kicked around here a bit. Here's what Diamond is doing, with a price tag of ~70% of new.

https://www.avweb.com/multimedia/podcast-diamond-finds-demand-for-remanufactured-airplanes/?MailingID=256&utm_source=ActiveCampaign&utm_medium=email&utm_content=Seven+Dead+In+Tour+Helicopter+Crash%2C+Refurb+Market+Strong&utm_campaign=Seven+Dead+In+Tour+Helicopter+Crash%2C+Refurb+Market+Strong-Monday+December+30%2C+2019

Granted there are significant differences in what Diamond is working with as far as fleet age and diversity, as compared to our Mooney fleet. But it once again begs the question of what one would pay for, say, a remanufactured M20J? And does that price support a business case for remanufacturing?

Cheers,
Rick

[steingar]

70% of new?  That means that your M20J is going to run well north of a half million.

Edited December 30, 2019 by steingar

[Mike A]

I don’t think the 70% standard would apply in a CPO J or K, but if you get more in the 50% arena a $400k highly upgraded Mooney-factory restored and backed plane becomes a very intriguing option. I would be all over it if they would factory convert all the K’s to the Encore spec (or better) mechanically or give some other nice upgrade that is most easily certified at a factory. 

Edited December 31, 2019 by Mike A

[1964-M20E]

well??

Let's as we do this with any M20 air frame and keep in mind you are keeping your factory people busy and making money in between building new planes.

C,E,F,G $30k+/-

1. IO360TN new $60k
2. New paint $15k
3. New interior $10k
4. Clean and rework landing gear (if manual leave as manual) upgrade actuators in electric models $5k
5. New GPS Avidyne or G at option of buyer $20k
6. Standard overhauled steam gauges ( maybe AV-30s for AI and DG) $10k
7. New cowling $8k
8. Extended motor mount to make current production cowling work $3k
9.  misc $10k

So you are about $180k invested and this covers labor for the work.  List the planes for $285k this gives you $100k+ profit.

Now you have a good clean aircraft that is faster than when it was produced.

 

J, K $60k+/-)

1. IO360TN new $60k or 305HP rocket conversion for $90k (maybe they can even offer the 305hp for some F and G models??
2. New paint $15k
3. New interior $10k
4. Clean and rework landing gear (if manual leave as manual) upgrade actuators in electric models $5k
5. New GPS Avidyne or G at option of buyer $20k
6. Standard overhauled steam gauges ( maybe AV-30s for AI and DG) $10k
7. New cowling $8k
8. Extended motor mount to make current production cowling work $3k
9.  misc $10k

So you are about $200k to $220k  invested and this covers labor for the work.  List the planes for $340k this gives you $100k+ profit.

Now you have a good clean aircraft that is faster than when it was produced.

 

Maybe throw in an extra 100 to 200lbs of useful load during this process as well.

 

 

[Hank]

11 hours ago, 1964-M20E said:

Now you have a good clean aircraft that is faster than when it was produced.

This is what we all want!

Maybe throw in an extra 100 to 200lbs of useful load during this process as well.

This is the really difficult part. Could it be done without having to re-certify with the Feds???

 

 

[PJClark]

Well, mine's already done, pretty much. So I'm not in the market but I was thinking from my own recent experience along the same lines as 64 M20E:

1. used airframe $100K

2.  I did seats and trim in leather for $6800 from Aero Comfort.  add carpet and upholstered side panels and headliner---total $16,000

3. Paint--$15000

4. Avionics: everything comes out. Back in:

Dual G3x Touch with EIS

G5

GTN750/650

GTX345R

GFC500

GMA350R with Telligence

$65,000

5.  Rocket-like conversion (IO360TN or TSIO-520 NB)--$90,000

6.  Misc--$25,000

Total:  $311,000

profit:  $89,000

Retail:  $400,000

max GW:  3200 #, UL 1000#+

(My airplane lost 80 lbs removing all the old avionics--the KFC200 system alone was in the original equipment lis at 37#!)

 

 

[Mike A]

43 minutes ago, Hank said:

Maybe throw in an extra 100 to 200lbs of useful load during this process as well.

This is the really difficult part. Could it be done without having to re-certify with the Feds???

Isn't that exactly what they did with the Encores?

[Mike A]

Just now, PJClark said:

profit:  $89,000

Since I assume your numbers were based upon your retail costs, there is also sustainable profit built into every component of the build pricing you gave and this number goes up even more.  Or that $400k price can come down more....

[Marauder]

Well, mine's already done, pretty much. So I'm not in the market but I was thinking from my own recent experience along the same lines as 64 M20E:
1. used airframe $100K
2.  I did seats and trim in leather for $6800 from Aero Comfort.  add carpet and upholstered side panels and headliner---total $16,000
3. Paint--$15000
4. Avionics: everything comes out. Back in:
Dual G3x Touch with EIS
G5
GTN750/650
GTX345R
GFC500
GMA350R with Telligence
$65,000
5.  Rocket-like conversion (IO360TN or TSIO-520 NB)--$90,000
6.  Misc--$25,000
Total:  $311,000
profit:  $89,000
Retail:  $400,000
max GW:  3200 #, UL 1000#+
(My airplane lost 80 lbs removing all the old avionics--the KFC200 system alone was in the original equipment lis at 37#!)
 
 

How did you get a GFC 500 installed in an E? I thought the J & up are only on the STC now.


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[tmo]

I think PJ has a Rocket and was talking about a hypothetical E.

[PJClark]

Sorry I was targeting  Js and Ks.  I have a Rocket.